#1: Merging With Bank Itau
Ricardo has chosen to merge with Bank Itau in an effort to offer stronger services to its customers. Two banks together have a much better position in the Brazilian market, and the two banks will offer the same services to all customers. The two companies plan to bring their executive teams together, and Ricardo will offer some control over the partnership to Bank Itay. The partnership will help fight CitiBank and other large banks that have moved into the country.
#2: Ricardo Believes In Personal Credit
Ricardo wants to offer as many small loans as possible to a large sector of the Brazilian population. Small loans will help both banks make quite a lot of money, but more people will be served by small loans. The majority of these loans will be payroll loans that help small businesses meet their payroll, and the other loans will be used by individuals who need extra cash.
#3: BMG Bank Has A Public Presence
BMG Bank has a public presence in Brazil that is difficult to miss. The company has spent quite a lot of money on advertising, and they have branched out to help people who live across South America. The bank itself wants to have greater influence in the region, and their marketing combined with the new partnership at Bank Itau helps everyone to achieve their goals.
#4: Supporting Industry
BMG Bank has a strong record of supporting industries in Brazil that offer jobs to the citizens. Jobs that people get because of funding from BMG Bank are found everywhere in the country, and BMG wants to continue to offer as much consigned credit as possible without allowing consigned credit to take up their entire balance sheet. Ricardo has balanced his desire to change for the future with his company’s history of helping industry in Brazil.
Everyone in Brazil knows the name of BMG Bank, and the bank has chosen to prepare for the future by entering into a partnership with Bank Itau. The two banks want to offer as much person credit as they can, and the two banks together will help each other win a battle of attrition that started with CitiCorp and other banks moved in.